§61-3-22a. Possession or use of automated sales suppression
devices; penalty.

(a) General. -- When used in this article, words defined in
subsection (b) of this section shall have the meanings ascribed to
them in this section, except in those instances where a different
meaning is provided in this article or the context in which the
word is used clearly indicates that a different meaning is intended
by the Legislature.

(b) Definitions. --

(1) "Automated sales suppression device" or "zapper" means a
software program, carried on a memory stick or removable compact
disc, accessed through an Internet link, or accessed through any
other means, that falsifies the electronic records of electronic
cash registers and other point-of-sale systems, including, but not
limited to, transaction data and transaction reports.

(2) "Electronic cash register" means a device that keeps a
register or supporting documents through the means of an electronic
device or computer system designed to record transaction data for
the purpose of computing, compiling or processing retail sales
transaction data in whatever manner.

(3) "Phantom-ware" means a hidden, preinstalled or installed
at a later time programming option embedded in the operating system
of an electronic cash register or hardwired into the electronic
cash register that can be used to create a virtual second till or
may eliminate or manipulate transaction records that may or may not
be preserved in digital formats to represent the true or manipulated record of transactions in the electronic cash register.

(4) "Transaction data" includes items purchased by a customer,
the price for each item, a taxability determination for each item,
a segregated tax amount for each of the taxed items, the amount of
cash or credit tendered, the net amount returned to the customer in
change, the date and time of the purchase, the name, address and
identification number of the vendor and the receipt or invoice
number of the transaction.

(5) "Transaction report" means a report documenting, but not
limited to, the sales taxes collected, media totals and discount
voids at an electronic cash register that is printed on cash
register tape at the end of a day or shift, or a report documenting
every action at an electronic cash register that is stored
electronically.

(c) It is unlawful to willfully and knowingly sell, purchase,
install, transfer or possess in this state any automated sales
suppression device or zapper or phantom-ware.

(d) Any person convicted of a violation of subsection (c) of
this section is guilty of a felony and, upon conviction thereof,
shall be confined in a correctional institution for not less than
one nor more than five years, or fined not less than $10,000 nor
more than $100,000, or both confined and fined.

(e) Any person violating subsection (c) of this section is
liable for all taxes and penalties due the state as the result of
the fraudulent use of an automated sales suppression device, zapper
or phantom-ware and shall forfeit all profits associated with the
sale or use of an automated sales suppression device or phantom-ware.

(f) An automated sales suppression device or phantom-ware and
any cash register or device containing such device or software is
contraband and, as such, subject to seizure and destruction by any
duly authorized law-enforcement agency in the state, including the
Criminal Investigation Division of the State Tax Department.